Global Economy and Trade Protectionism: Tools, Barriers, and Impacts

Global economy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The global economy is the economy of all the individuals on the planet, it includes all the
activities related to economy which is within the national level or international level. It is
production, consumption, economic management, work in general, and exchange of financial
values. The two words are very typical which is global and international as it is distinguished
from the national economy while the world economy is simply an total of individual countries.
Trade protectionism is a position that some countries follow to save the domestic industries from
foreign rivals. The four primary tools used in trade protectionism are tariffs, subsidies, quotas,
and currency devaluation(Alimahomed-Wilson and Reese, 2021).
MAIN BODY
Trade Protectionism is the point of finishing the poverty, countries who are involved in
international trade are at a stake of growing fast in terms of revenue, innovation, improve
productivity and provide higher income and good opportunities to their employees. Open trade
also supports the falls income unit by providing customers more affordable goods and services.
There are some of the reason due to which government restrict the trade and they are like
Protection of small industries, Protection of national security, Protection of local jobs(Schwab,
2021).
Tradewind can be one of the major solution for this , combining financing, credit protection, and
collection into a single trade finance facility. It provides streamlined, flexible and best in class
services.
Actual effects of government intervention on the free flow of trade, most of the
economist have discussed about the government intervention and according to them it is more
ideological than logical. Trade deficit and surpluses typically force financial and other
economic changes in the affected countries that tend to get rid of the proportionality, the idea
that all the countries lose in a trade war is incomprehensible. This cannot possibly be true not just
because there is overpowering real indication that the countries have benefited from trade
intervention. Tariffs and currency devaluation are not the only forms of trade intervention and
are not the the only ways deformation are introduced into the global trade and capital
flows(Bogdan and Lomakovych, 2021).
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